Seven & I Holdings, the parent company of 7-Eleven stores, has stated that it will need to reassess its supply chain and control costs as U.S. consumers feel the effects of new tariffs.
Incoming CEO Stephen Dacus, set to take over next month, said that the company is preparing for a tougher retail environment. He emphasized that the tariffs, part of U.S. President Donald Trump’s global trade agenda, are expected to lead to higher prices, which could create significant hurdles for retailers. U.S. consumer sentiment dropped in April, and inflation expectations hit their highest levels since 1981.
Dacus, an outside director, noted that the most significant impact of tariffs would be on consumer behavior rather than directly on suppliers. He stressed the importance of tightening cost controls and closely managing the supply chain to navigate this challenging environment.
Amid a $47 billion takeover bid from Canada’s Alimentation Couche-Tard, Seven & I has been focusing on enhancing its corporate value. A key part of this strategy is improving its U.S. division, which operates over 12,000 convenience stores. North American sales account for 73% of the company’s total revenue.
The company still plans to list its North American subsidiary in the second half of 2026, although this will depend on market conditions at the time, and a delay may occur, Dacus said. The initial public offering is expected to provide financial flexibility to invest more in the stores, especially in expanding locations with quick-service restaurants, which are more profitable.
In addition, Seven & I has sold its superstore unit to Bain Capital and launched a share buyback program worth approximately 2 trillion yen ($14 billion) through fiscal year 2030.
The company is in talks with its Canadian suitor but believes U.S. antitrust regulators may pose challenges to the deal’s approval. Dacus, who led the special committee reviewing the takeover bid, declined to comment on the ongoing negotiations.
“My appointment as CEO had nothing to do with the takeover offer,” Dacus said. “We don’t talk about Couche-Tard among the management team because there’s nothing we can do about it,” he added, noting that the special committee handles the matter.
On Friday, Seven & I’s shares were trading at around 2,100 yen, lower than Couche-Tard’s offer of 2,700 yen per share, reflecting investor skepticism about the deal’s completion.
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